SwissBorg, the crypto wallet and exchange service, has confirmed a major hack targeting its Solana staking protocol, SOL Earn. The attack drained approximately $41.5 million in SOL after hackers exploited a partner API vulnerability.
Blockchain investigator ZachXBT first alerted the community, estimating the damages, which the company quickly acknowledged. According to SwissBorg, the breach was limited to its Solana staking service, with no impact on other assets or protocols. However, the theft still represents a significant share of its Solana reserves.
Data from Arkham Intelligence shows SwissBorg currently holds about $72.6 million in Solana, meaning the hack compromised well over half of its total SOL holdings. The firm said it will use treasury funds to refund users a “significant portion” of their lost balances. Full reimbursement may depend on asset recovery, which remains uncertain.
Although SOL Earn makes up just 1% of SwissBorg’s overall user base, the scale of the hack underscores ongoing risks in DeFi and exchange security. API exploits in particular have become a recurring weakness, as vulnerabilities in third-party integrations can bypass otherwise strong internal safeguards.
CEO Cyrus Fazel, who previously expressed optimism about Solana, acknowledged the severity of the loss and announced a live broadcast to address the situation and share next steps. SwissBorg emphasized that its staking programs for other tokens remain secure.
The incident comes amid growing concerns over a “crypto crime supercycle,” with hackers increasingly targeting exchanges and decentralized finance protocols. Investigators and blockchain security experts are now tracking the stolen funds in hopes of recovery.
While SwissBorg works on partial refunds, the hack highlights how even trusted platforms can fall victim to third-party vulnerabilities, reinforcing the need for heightened security across the industry.
